College Place accepts $500,000 0% Department of Health loan to design Southeast 12th Street water infrastructure
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Summary
Council authorized acceptance of a $500,000, 0% Department of Health loan (plus $10,000 fee) to plan and design water infrastructure on Southeast 12th Street with repayment built into utility rates over a 10-year term; the award covers design only.
The College Place City Council voted on Jan. 13 to accept a $500,000 loan from the Washington State Department of Health, with a $10,000 loan fee and a 0% interest rate, to fund planning and design of water infrastructure on Southeast 12th Street.
Public works staff described a multi-stage approach recommended by funding agencies: address underground infrastructure first (water, sewer, storm), then proceed to above-ground improvements such as road, sidewalk, bike lane and landscaping. Mr. McAndrew said the $500,000 award is specifically for design; construction funding is often provided later after a design report is completed.
When asked how repayment would be handled, staff said the loan will be factored into utility reserves and built into the utility rate structure; the loan term is 10 years. Mr. McAndrew confirmed the award included a 0% interest rate, stating "it is 0%." Council member Stecklein moved to authorize the public works director (or designee) to sign the loan contract; Council member Boyle seconded and the motion passed by voice vote.
Next steps: staff will execute the loan documents, proceed with design, and return to council with any construction-funding requests that may follow the design report.